Aluar Aluminio Argentino (ALUA) Q1 24/25 earnings summary

Executive summary

• Q1 FY24/25 revenue was $358,972,905,899 versus $349,899,645,331; net income was $27,297,567,364 versus $37,007,742,440. Figures are stated in closing-period currency.

• Earnings attributable to shareholders were $26,110,129,809; the period included $6,992 million from subsidiaries and associates.

• Results from operations were $16,559.1 million lower in constant-value terms YoY, reflecting higher alumina costs, weaker operating results and higher income tax expense.

Financial highlights

• Gross profit was $67,534,633,004 versus $80,947,217,012; operating income was $54,671,072,849 versus $52,674,917,252.

• Net financial result was a loss of $3,145,707,742 versus income of $1,902,989,719; net FX difference was a loss of $19,025,046,202 versus a gain of $7,274,915,050.

• Income tax expense was $24,177,588,136 versus $17,566,405,155; basic and diluted EPS were $9.33 versus $13.08.

• Adjusted for inflation, operating cash flow used $46,540,465,156; investing used $40,051,313,027 and financing generated $50,469,126,156.

Outlook and guidance

• The primary aluminum plant was operating at full capacity; exports were expected to continue to customary destinations, subject to international trade conditions.

• Aluminum prices were volatile in Q1, while alumina prices rose sharply and remained elevated relative to aluminum; gradual alumina and bauxite supply normalization was expected.

• Domestic industrial demand remained markedly weak, with early signs of recovery in some sectors not yet established; results for the fiscal year remain sensitive to local and international developments.

• Futaleufú hydro generation was expected to remain near historical averages in the next quarter; future positive results were anticipated, with surplus power sold to the wholesale market.